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Request for Equitable Adjustment

A Request for Equitable Adjustment, also called an REA, is an official request from a contractor made to a contracting officer requesting a contract price change due to unanticipated issues that can arise during a project. Imburgia Consulting can advise contractors about filing REAs when unforeseen problems occur, particularly in cases where a contractor is unable to negotiate a new increase in price and time with the contracting officer.

There are four types of REAs: default, where a contractor refuses or fails to prosecute work within the agreed time frame; differing site conditions, where the physical conditions of the site differ materially from that specified in the contract or unknown physical conditions at the site differ from those ordinarily encountered for said project; unforeseen or unintended changes, which results in an increase or decrease in costs and thereby requires the contract to be adjusted and entitles the contractor to be compensated; and suspension of work, when the performance of all or any part of work has been suspended, delayed or interrupted for an unreasonable period of time.

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